Control issues

There are a number of issues that need to be considered when setting up and the operating a procurement card system:

  • The identification of staff to have and use a procurement card
  • Separation of duties to ensure that one person does not decide which goods/services to purchase, take delivery of the goods/services and then authorised payment (ie confirm the accuracy of the procurement card log).  The monthly reconciled statement must be countersigned by the card holder’s line manager or the area’s Head of Department (thereby endorsing the statement’s accuracy)
  • Identification of categories of expenditure that should be blocked to prevent purchases from that range of goods or services
  • The physical security of the procurement card and its reference number. Normally the card holder will have personal responsibility for the security of the procurement card because the card will be issued with both his/her name and the institution’s name. Staff should treat the security of the card as if it were their own personal credit card
  • Determination of an appropriate individual and monthly transaction limits for the card holders
  • A determination of the category of suppliers with whom the card may be used ie contracted suppliers only or supplier capable of taking credit card payments
  • The design and use of a suitable transaction log that meets the needs of the institution in terms of providing an audit trail and, if necessary, collecting information for upload into the financial system
  • Retention of documentation policy.  In accordance with standard requirements the supporting documentation should be retained for a period of not less than 5 years. Depending on the institution’s internal policies, the procurement log and supporting documentation may be retained by the card holder’s department or centrally in the Finance Department

Example - Card Holder User Guide

Example - Card Holder Acknowledgement Form